CORRECT: BLIS forecasts wider 2013 loss, seeks to raise capital
(Corrects third paragraph to show US company suspended promotions)
By Hannah Lynch
Aug. 31 (BusinessDesk) - BLIS Technologies, the NZX-listed biotechnology company, widened its forecast 2013 loss and launched a share purchase plan and placement in a bid to raise up to $1.5 million.
The Dunedin-based company says its operating loss in the year ending March 31 may be $1.3 million, up from the loss of $800,000 million it affirmed in July.
The change reflects a decision by a US-based formulator to suspend the promotion and sales of a product with the K12 and M18 probiotics in the US and deferral of a launch in China. That resulted in BLIS's distributor Stratum Nutrition reviewing its supply chain requirements.
BLIS will also undertake a share purchase plan and placement, with the potential to raise up to $1.5 million. That is on top of investment bank Murray & Co capital raising initiatives released under a confidential information memorandum in April.
"Murray & Co are talking to a number of funds about options to get funds into the business," director Bevan Wallace told BusinessDesk. "They are progressing well with those discussions. In the interim, the board decided we should progress with the share placement plan."
Documentation on the share purchase plan will be provided to shareholders later this month.
BLIS shares fell about 17% to 1 cent on the NZX today and have dropped 59% this year.